A Simple Stress Test of Philippine Banks as of June 30, 2018

In an April 9, 2012 article entitled "Stress Test Proves Strength of PH Banks", "Philippine banks are seen to survive a disaster in which the various lenders are forced to write off loans as large as PhP 36 billion without asking shareholders, the central bank, or the national government for bailout money."  This assertion stems from a recent stress test conducted by the Bangko Sentral ng Pilipinas (BSP) on all 55 regular and commercial and expanded license banks.

For Philippine Banks, these NPLs currently comprise PhP 151.87 billion or 8.31% of the PhP 1,828.60 billion in Stockholders Equity (SE) as of June 30, 2018.  So, writing off 50% of the Philippine Banks NPLs would reduce their aggregate stockholder's equity by a little less than 5%.

Naturally, some banks would be more affected than others.

The stockholder's equity of six banks would be severely affected.  These banks are:

1. Enterprise Bank Inc (77.66% decline in SE)
2. Equicom Savings Bank (45.32% decline in SE)
3. Philippine Veterans Bank (40.29% decline in SE)
4. UCPB Savings Bank (35.71% decline in SE)
5. Legazpi Savings Bank (30.00% decline in SE)
6. Sterling Bank of Asia Inc (29.15% decline in SE) 

Some of these banks are distressed. For more information regarding this, please read The Top Distressed Philippine Banks as of June 30, 2018).

1. Enterprise Bank Inc (Distressed Ratio of 361.81%)
2. Equicom Savings Bank (Distressed Ratio of 119.88%)

 

Are NPLs the Right Numbers to Look At?

In a financial crisis, a loan that is current can very well become past due, and a past due loan can become a non-performing loan, and a non-performing loan can become a loan write-off.  The real number to look at are the loans that the banks and BSP already consider doubtful: Classified Loans.

Investopedia.com defines "Classified Loans" as:

"Any bank loan that is in danger of default. Classified loans have unpaid interest and principal outstanding, and it is unclear whether the bank will be able to recoup the loan proceeds from the borrower. Banks usually categorize such loans as adversely classified assets on their books."

The US Federal Deposit Insurance Corporation (FDIC), similar to our very own Philippine Deposit Insurance Corporation (PDIC), defines Classified Loans as:

"Loans classified Loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future."

In Circular #0247 dated May 19, 2000, BSP defines Classified Loans as loans which possess the following characteristics:

1. Loans especially mentioned because they have potential weaknesses that deserve Management's close attention;
2. Substandard Loans are loans which appear to involve a substantial and unreasonable degree of risk to the institution because of unfavorable record or unsatisfactory characteristics;
3. Doubtful Loans are Substandard Loans with the added characteristics that existing facts, conditions, and values make collection or liquidation in full highly improbable and in which substantial loss is probable;
4. Loss loans are loans that are considered uncollectible or worthless and are of such little value that their continuance as bankable assets is not warranted although the loans may have some recovery or salvage value.

The circular mandates that an allowance for probable losses should be set up in accordance with the following schedule:

1. Loans Especially Mentioned: 5%
2. Substandard - Secured: 6% - 25%
3. Substandard - Unsecured: 25%
4. Doubtful: 50%
5. Loss: 100%

As of June 30, 2018, "Classified Loans and Other Risky Assets" of the Philippine Banks amounted to PhP 377.73 billion or more than two times the size of the Philippine Banking System's NPLs of PhP 146.70 billion for the same period.  Consequently, any write-offs of Classified Loans will have more than twice the impact of an NPL write-off.

 
This level of classified loans should be measured against the bank's "capital cushion" or its ability to absorb losses.  Capital Cushion is normally defined as a bank's "Tangible Common Equity" plus its Loan Loss Reserves.  Tangible Common Equity (TCE) refers to the subset of shareholders' equity that is not preferred equity and not intangible assets.  So it excludes such items as Hybrid equity (like preferred shares) and goodwill.

By this measure, the level of "Classified Loans and other Risky Assets" amounts to Php 377.73 billion or 19.48% of the Php 1.94 trillion in Total Capital Cushion of Philippine Banks as of June 30, 2018.

 

Stress Test Scenarios

Aggregate

So how will a 10%, 20%, 30%, 40%, and even 50% write-off of Classified Loans affect the Total Capital Cushion of the Philippine Banking System?

In the aggregate, if Classified Loans amount to 19.48% of the banking system's Total Capital Cushion, then it follows that a 10% write-off of Classified Loans will reduce the total capital by 1.95% and a 50% write-off of classified loans will reduce the banking system's Total Capital Cushion by 9.74%.


Individual Banks

A 10% write-off of Classified Loans would severely impact (by 25% or more) the Total Capital Cushion of one bank (severely affected banks highlighted in yellow).

 

1. Inter-Asia Development Bank (34.68% reduction in Total Capital Cushion)

A 20% write-off of Classified Loans will severely impact the Total Capital Cushion of four banks:

1. Inter-Asia Development Bank (69.36% reduction in Total Capital Cushion)
2. Bangko Kabayan Inc (45.05% reduction in Total Capital Cushion)
3. United Coconut Planters Bank (42.26% reduction in Total Capital Cushion)
4. Yuanta Savings Bank Philippines (31.28% reduction in Total Capital Cushion)

A 30% write-off of Classified Loans will totally wipe out the Total Capital Cushion of one bank (highlighted in red) and severely affect (reduce by 25% or more) the Total Capital Cushion of nine other banks:

1. Inter-Asia Development Bank (104.04% reduction in Total Capital Cushion)
2. Bangko Kabayan Inc (67.57% reduction in Total Capital Cushion)
3. United Coconut Planters Bank (63.39% reduction in Total Capital Cushion)
4. Yuanta Savings Bank Philippines (46.92% reduction in Total Capital Cushion)
5. Malayan Bank Savings and Mortgage Bank (37.02% reduction in Total Capital Cushion)
6. Bank of China Limited - Manila Branch (34.89% reduction in Total Capital Cushion)
7. RCBC Savings Bank Inc (34.12% reduction in Total Capital Cushion)
8. Bataan Development Bank (29.25% reduction in Total Capital Cushion)
9. Legazpi Savings Bank Inc (26.18% reduction in Total Capital Cushion)
10. Equicom Savings Bank (25.56% reduction in Total Capital Cushion)

 

A 40% write-off of Classified Loans will totally wipe out the Total Capital Cushion of one bank and severely affect (reduce by 25% or more) the Total Capital Cushion of thirteen more banks:

 

 

1. Inter-Asia Development Bank (138.72% reduction in Total Capital Cushion)
2. Bangko Kabayan Inc (90.10% reduction in Total Capital Cushion)
3. United Coconut Planters Bank (84.52% reduction in Total Capital Cushion)
4. Yuanta Savings Bank Philippines (62.56% reduction in Total Capital Cushion)
5. Malayan Bank Savings and Mortgage Bank (49.36% reduction in Total Capital Cushion)
6. Bank of China Limited - Manila Branch (46.52% reduction in Total Capital Cushion)
7. RCBC Savings Bank Inc (45.50% reduction in Total Capital Cushion)
8. Bataan Development Bank (39.00% reduction in Total Capital Cushion)
9. Legazpi Savings Bank Inc (34.91% reduction in Total Capital Cushion)
10. Equicom Savings Bank (34.08% reduction in Total Capital Cushion)
11. Philippine Resources Savings Banking (30.39% reduction in Total Capital Cushion)
12. Robinsons Bank Corporation (28.75% reduction in Total Capital Cushion)
13. Philippine Business Bank Inc (28.46% reduction in Total Capital Cushion)
14. China Bank Savings (27.32% reduction in Total Capital Cushion)

A 50% write-off of Classified Loans will totally wipe out the Total Capital Cushion of three banks and severely affect (reduce by 30% or more) the Total Capital Cushion of seventeen more banks:

1. Inter-Asia Development Bank (173.40% reduction in Total Capital Cushion)
2. Bangko Kabayan Inc (112.62% reduction in Total Capital Cushion)
3. United Coconut Planters Bank (105.65% reduction in Total Capital Cushion)
4. Yuanta Savings Bank Philippines (78.20% reduction in Total Capital Cushion)
5. Malayan Bank Savings and Mortgage Bank (61.69% reduction in Total Capital Cushion)
6. Bank of China Limited - Manila Branch (58.15% reduction in Total Capital Cushion)
7. RCBC Savings Bank Inc (56.87% reduction in Total Capital Cushion)
8. Bataan Development Bank (48.75% reduction in Total Capital Cushion)
9. Legazpi Savings Bank Inc (43.64% reduction in Total Capital Cushion)
10. Equicom Savings Bank (42.60% reduction in Total Capital Cushion)
11. Philippine Resources Savings Banking (37.98% reduction in Total Capital Cushion)
12. Robinsons Bank Corporation (35.94% reduction in Total Capital Cushion)
13. Philippine Business Bank Inc (35.57% reduction in Total Capital Cushion)
14. China Bank Savings (34.16% reduction in Total Capital Cushion)
15. UCPB Savings Bank (30.91% reduction in Total Capital Cushion)
16. Maritime Savings Bank Corporation (28.22% reduction in Total Capital Cushion)
17. Philippine Savings Bank (28.20% reduction in Total Capital Cushion)
18. Dumaguete City Development Bank Inc (27.75% reduction in Total Capital Cushion)
19. Penbank (27.12% reduction in Total Capital Cushion)
20. Philippine Veterans Bank (26.26% reduction in Total Capital Cushion)

Please bear in mind that a number of these banks are already very weak and are in distress.  Please see a previous blog post: "The Top Distressed Philippine Banks as of June 30, 2018".  Moreover, their capital can be overstated.  See a previous blog post "Overstated Capital of Philippine Banks as of June 30, 2018".  As such, any reduction in their capital cushion could knock down an already weak bank.

 

Source: www.bsp.gov.ph

Enterprise Bank Ranks 1st in Non-Performing Loans as % of Stockholder's Equity as of June 30, 2018

Editor's Note: Data is culled from  the Published Statements of Condition of individual Philippine Banks found in www.bsp.gov.ph.  
This blog post updates previous blog posts such as Overseas Filipino Bank Ranks 1st in Non-Performing Loans as % of Stockholder's Equity as of March 31, 2018 .


NPLs.  Short for Non-Performing Loans.  The NPL Ratio or the ratio of a bank's Non-Performing Loans (NPL) to Total Loan Portfolio (TLP) is a frequently cited figure in the general media to indicate a bank's financial health or the health of the banking system as a whole.  See: "Banks reduce exposure to bad debts, have more cash to loan out—BSP".

In the Philippine Banking Industry, Gross Non-Performing Loans stood at Php 151.87 billion as of June 30, 2018 - approximately 1.66% of the Philippine Banking Industry's Total Loan Portfolio of Php 9.13 trillion.

 

Philippine Banking System
NPL as % of TLP
June 30, 2018
			Gross NPL/ Gross TLP
Bank	Gross NPLs	Gross TLP	(In %)
MALASIQUI PROGRESSIVE SLB, INC	17,776,401.59	36,510,663.68	48.69%
LEGAZPI SAVINGS BANK INC	329,578,715.05	1,180,571,177.67	27.92%
NORTHPOINT DEV'T BANK INC	112,927,580.50	477,228,168.71	23.66%
ENTERPRISE BANK INC (A THRIFT BANK)	397,531,630.21	1,688,539,063.65	23.54%
YUANTA SAVINGS BANK PHILIPPINES INC	114,070,749.99	598,982,527.00	19.04%
MARITIME SAVINGS BANK CORPORATION	21,895,317.81	125,380,810.11	17.46%
UNIVERSITY SAVINGS BANK INC	86,921,859.14	533,081,694.74	16.31%
PAMPANGA DEVELOPMENT BANK	56,036,372.72	379,227,332.60	14.78%
PACIFIC ACE SAVINGS BANK INC	4,706,728.00	31,858,387.00	14.77%
HIYAS BANKING CORPORATION	40,456,381.87	285,127,672.33	14.19%
UCPB SAVINGS BANK	1,881,456,594.41	14,978,218,742.57	12.56%
PHILIPPINE RESOURCES SAVINGS BANKING	1,179,751,558.32	9,653,299,888.09	12.22%
BATAAN DEVELOPMENT BANK	25,467,010.45	215,445,265.89	11.82%
EQUICOM SAVINGS BANK INC	639,559,441.16	5,681,588,373.47	11.26%
1ST VALLEY BANK INC A DEVELOPMENT BANK	672,608,541.12	6,160,867,217.81	10.92%
CORDILLERA SAVINGS BANK INC	20,233,158.02	195,970,518.57	10.32%
PHILIPPINE VETERANS BANK	2,244,899,440.80	22,858,159,707.00	9.82%
BUSINESS AND CONSUMERS BANK (A DB)	14,966,364.02	168,309,345.14	8.89%
STANDARD CHARTERED BANK	2,633,305,802.50	29,977,204,908.00	8.78%
BANK OF MAKATI (A SAVINGS BANK) INC	2,271,355,751.00	26,048,908,350.25	8.72%
FIRST CONSOLIDATED BANK INC (A PDB)	930,922,550.94	11,013,529,417.24	8.45%
BPI DIRECT BANKO INC A SAVINGS BANK	814,235,200.14	9,983,023,775.74	8.16%
MALAYAN BANK SAVINGS AND MORT BANK INC	369,652,752.94	4,750,745,864.79	7.78%
PENBANK INC (A PDB) (FORMERLY: PENINSULA	127,664,962.18	1,715,076,134.55	7.44%
FARMERS SAVINGS & LOAN BANK INC	16,432,486.76	227,641,794.99	7.22%
LIFE SAVINGS BANK INC	2,830,739.19	40,289,825.98	7.03%
MERCHANTS SAVINGS & LOAN ASSN INC	72,606,891.31	1,071,743,257.48	6.77%
CITYSTATE SAVINGS BANK INC	136,247,026.40	2,079,928,926.70	6.55%
ALLBANK (A THRIFT BANK) INC	134,216,215.54	2,100,725,766.01	6.39%
WEALTH DEVELOPMENT BANK CORPORATION	405,053,553.43	6,829,947,914.69	5.93%
CHINA BANK SAVINGS INC	3,781,873,875.79	67,740,955,280.01	5.58%
STERLING BANK OF ASIA INC (A SAVINGS	1,567,148,692.24	29,584,241,999.78	5.30%
METRO CEBU PUBLIC SAVINGS BANK	9,340,189.11	177,368,221.65	5.27%
BPI FAMILY SAVINGS BANK INC	10,468,965,854.84	213,916,313,107.67	4.89%
RCBC SAVINGS BANK INC	4,169,995,103.97	89,677,402,793.29	4.65%
PNB SAVINGS BANK	2,300,104,540.68	50,091,559,835.03	4.59%
EAST WEST BANKING CORP	8,947,748,783.20	202,262,693,199.00	4.42%
PHIL BANK OF COMMUNICATIONS	2,377,981,312.50	54,045,140,735.00	4.40%
BANK ONE SAVINGS CORPORATION	51,920,016.00	1,191,304,969.17	4.36%
UNITED COCONUT PLANTERS BANK	5,637,030,450.60	159,822,136,760.00	3.53%
PHIL SAVINGS BANK	5,541,695,108.80	157,589,155,464.10	3.52%
INTER-ASIA DEVELOPMENT BANK	7,160,669.24	205,705,817.12	3.48%
PRODUCERS SAVINGS BANK CORPORATION	384,458,590.47	11,107,481,692.59	3.46%
UNION BANK OF THE PHILS	7,764,720,733.10	258,082,173,823.00	3.01%
BANK OF COMMERCE	1,790,008,869.00	60,076,819,461.00	2.98%
DUMAGUETE CITY DEV BANK INC	14,935,890.88	536,771,887.15	2.78%
MAYBANK PHILIPPINES INCORPORATED	1,893,373,519.10	74,052,934,538.00	2.56%
LEMERY SAVINGS & LOAN BANK, INC.	2,090,392.45	83,599,044.42	2.50%
CARD SME BANK INC A THRIFT BANK	98,098,716.66	4,154,957,609.71	2.36%
PHILIPPINE BUSINESS BANK INC A SAVINGS	1,854,076,328.08	78,938,986,274.62	2.35%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT	42,442,605.42	1,884,987,319.61	2.25%
ASIA UNITED BANK CORPORATION	3,000,943,436.40	134,273,663,794.00	2.23%
DEVELOPMENT BANK OF THE PHIL	6,833,844,003.90	307,471,229,530.00	2.22%
PHIL TRUST COMPANY	1,119,876,214.30	54,742,981,298.00	2.05%
PHIL NATIONAL BANK	8,855,596,734.50	469,160,139,168.00	1.89%
SUN SAVINGS BANK INC	20,766,750.32	1,176,211,465.60	1.77%
CENTURY SAVINGS BANK CORPORATION	10,875,949.65	652,051,077.18	1.67%
CTBC BANK (PHILIPPINES) CORP	496,519,465.43	36,188,074,020.00	1.37%
LAND BANK OF THE PHILIPPINES	9,702,134,275.60	758,685,067,090.00	1.28%
ROBINSONS BANK CORPORATION	758,692,635.02	60,582,618,209.00	1.25%
RIZAL COMM'L BANKING CORP	3,537,445,273.10	284,872,540,830.00	1.24%
HSBC SAVINGS BANK(PHILS) INC	34,454,464.98	3,239,000,485.25	1.06%
BANK OF THE PHIL ISLANDS	10,576,324,545.00	1,033,357,380,402.27	1.02%
BDO UNIBANK INC	17,834,422,711.00	1,912,976,460,184.75	0.93%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	4,111,569.36	475,006,843.31	0.87%
CHINA BANKING CORP	3,199,071,460.70	397,205,152,665.00	0.81%
HONGKONG & SHANGHAI BANKING CORP	501,255,503.13	64,973,169,266.00	0.77%
METROPOLITAN BANK & TCO	7,598,997,495.60	1,087,076,900,000.00	0.70%
SECURITY BANK CORP	2,264,379,743.30	386,957,936,302.00	0.59%
QUEZON COCONUT BANK INC (A THRIFT BANK)	409,148.47	70,774,999.75	0.58%
CITIBANK, N.A.	982,359,482.14	193,543,320,404.00	0.51%
BANGKOK BANK PUBLIC CO LTD	28,260,972.33	8,394,858,783.90	0.34%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK	5,386,169.19	1,729,144,655.75	0.31%
KEB HANA BANK - MANILA BRANCH	23,050,214.36	9,433,215,864.00	0.24%
ING BANK N.V.	108.68	15,153,831,208.00	0.00%
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED	0.00	25,177,431,227.00	0.00%
BANK OF AMERICA N.A.	0.00	11,792,660,148.00	0.00%
BANK OF CHINA LIMITED-MANILA BRANCH	0.00	11,557,837,430.00	0.00%
BDO PRIVATE BANK, INC.	0.00	6,786,073,618.10	0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	2,194,789,121.30	0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0.00	1,312,860,000.00	0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	2,507,360,144.00	0.00%
ISLA BANK(A THRIFT BANK) INC	0.00	856,727,377.58	0.00%
JP MORGAN CHASE BANK NATIONAL ASSN.	0.00	28,891,801,398.00	0.00%
MEGA INT'L COMM'L BANK CO LTD	0.00	11,598,801,960.00	0.00%
MIZUHO BANK LTD - MANILA BRANCH	0.00	60,726,858,318.00	0.00%
MUFG BANK, LTD.	0.00	39,557,047,973.00	0.00%
PHIL STAR DEVELOPMENT BANK INC	0.00	23,365,873.62	0.00%
SHINHAN BANK - MANILA BRANCH	0.00	2,279,106,376.60	0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	22,314,769,544.00	0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0.00	1,886,645,980.00	0.00%
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH	0.00	0.00	NA
Grand Total	151,869,716,346.10	9,128,164,687,359.33	1.66%

There are two Philippine Banks with a Gross NPL Ratio greater than 25.00% of Total Loan Portfolio (TLP).  These are as follows:

1. Malasiqui Progressive SLB Inc (48.69% of TLP)
2. Legazpi Savings Bank (27.92% of TLP)

 

The ratio of a bank's NPLs to its total Stockholders Equity (SE) maybe more important than the ratio of its NPLs to Total Loan Portfolio.  The idea behind this is that NPLs are fragile things.  As a loan deteriorates, its recoverable value will deteriorate as well.  A foreclosure will most likely result in a loan recovery that is a mere fraction of the loan's original value.  Therefore, banks with high NPL Ratios relative to their Stockholders Equity may face a significant loss of capital if a substantial amount of their NPLs are written off as a loss.

 

On an overall basis, the Gross NPLs of Philippine Banks amounted to 8.31% of Stockholders Equity as of June 30, 2018.

 

 

Philippine Banking System
NPL as % of SE
June 30, 2018
	NPL	SE	NPL/SE
Bank	(In PHP)	(In PHP)	(In %)
ENTERPRISE BANK INC (A THRIFT BANK)	397,531,630.21	255,928,851.45	155.33%
EQUICOM SAVINGS BANK INC	639,559,441.16	705,627,984.97	90.64%
PHILIPPINE VETERANS BANK	2,244,899,440.80	2,786,113,008.00	80.57%
UCPB SAVINGS BANK	1,881,456,594.41	2,634,213,019.40	71.42%
LEGAZPI SAVINGS BANK INC	329,578,715.05	549,357,466.88	59.99%
STERLING BANK OF ASIA INC (A SAVINGS	1,567,148,692.24	2,687,742,085.37	58.31%
PHILIPPINE RESOURCES SAVINGS BANKING	1,179,751,558.32	2,584,678,848.90	45.64%
MARITIME SAVINGS BANK CORPORATION	21,895,317.81	51,712,483.13	42.34%
STANDARD CHARTERED BANK	2,633,305,802.50	6,648,780,037.10	39.61%
CHINA BANK SAVINGS INC	3,781,873,875.79	9,605,233,020.00	39.37%
MALASIQUI PROGRESSIVE SLB, INC	17,776,401.59	47,015,701.96	37.81%
1ST VALLEY BANK INC A DEVELOPMENT BANK	672,608,541.12	1,825,791,198.67	36.84%
BPI DIRECT BANKO INC A SAVINGS BANK	814,235,200.14	2,241,511,112.81	36.33%
BPI FAMILY SAVINGS BANK INC	10,468,965,854.84	29,151,476,551.93	35.91%
UNITED COCONUT PLANTERS BANK	5,637,030,450.60	16,061,149,942.00	35.10%
RCBC SAVINGS BANK INC	4,169,995,103.97	12,965,046,161.93	32.16%
NORTHPOINT DEV'T BANK INC	112,927,580.50	352,164,899.53	32.07%
MALAYAN BANK SAVINGS AND MORT BANK INC	369,652,752.94	1,215,712,099.40	30.41%
BATAAN DEVELOPMENT BANK	25,467,010.45	87,495,176.93	29.11%
WEALTH DEVELOPMENT BANK CORPORATION	405,053,553.43	1,466,070,380.61	27.63%
BANK OF MAKATI (A SAVINGS BANK) INC	2,271,355,751.00	8,238,275,831.54	27.57%
PAMPANGA DEVELOPMENT BANK	56,036,372.72	210,076,452.17	26.67%
PENBANK INC (A PDB) (FORMERLY: PENINSULA	127,664,962.18	486,537,157.86	26.24%
PHIL SAVINGS BANK	5,541,695,108.80	21,335,640,584.46	25.97%
HIYAS BANKING CORPORATION	40,456,381.87	181,661,891.20	22.27%
EAST WEST BANKING CORP	8,947,748,783.20	40,866,792,665.00	21.89%
PRODUCERS SAVINGS BANK CORPORATION	384,458,590.47	1,807,520,461.46	21.27%
UNIVERSITY SAVINGS BANK INC	86,921,859.14	413,440,905.05	21.02%
FIRST CONSOLIDATED BANK INC (A PDB)	930,922,550.94	4,570,662,564.45	20.37%
CITYSTATE SAVINGS BANK INC	136,247,026.40	689,166,525.37	19.77%
PHIL BANK OF COMMUNICATIONS	2,377,981,312.50	12,176,574,918.00	19.53%
PNB SAVINGS BANK	2,300,104,540.68	11,815,509,660.09	19.47%
PHILIPPINE BUSINESS BANK INC A SAVINGS	1,854,076,328.08	10,483,404,670.03	17.69%
BUSINESS AND CONSUMERS BANK (A DB)	14,966,364.02	89,288,568.22	16.76%
CORDILLERA SAVINGS BANK INC	20,233,158.02	125,480,691.01	16.12%
MAYBANK PHILIPPINES INCORPORATED	1,893,373,519.10	12,631,096,125.00	14.99%
DEVELOPMENT BANK OF THE PHIL	6,833,844,003.90	48,566,251,889.00	14.07%
ALLBANK (A THRIFT BANK) INC	134,216,215.54	1,023,982,884.40	13.11%
METRO CEBU PUBLIC SAVINGS BANK	9,340,189.11	73,784,149.66	12.66%
MERCHANTS SAVINGS & LOAN ASSN INC	72,606,891.31	575,687,456.31	12.61%
YUANTA SAVINGS BANK PHILIPPINES INC	114,070,749.99	904,676,373.66	12.61%
FARMERS SAVINGS & LOAN BANK INC	16,432,486.76	130,364,483.10	12.61%
BANK OF COMMERCE	1,790,008,869.00	14,938,230,238.00	11.98%
ASIA UNITED BANK CORPORATION	3,000,943,436.40	26,734,337,352.00	11.23%
UNION BANK OF THE PHILS	7,764,720,733.10	72,244,542,805.00	10.75%
CARD SME BANK INC A THRIFT BANK	98,098,716.66	1,068,715,715.70	9.18%
SUN SAVINGS BANK INC	20,766,750.32	230,235,251.89	9.02%
INTER-ASIA DEVELOPMENT BANK	7,160,669.24	80,488,067.51	8.90%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT	42,442,605.42	488,777,914.10	8.68%
BANK ONE SAVINGS CORPORATION	51,920,016.00	607,047,008.69	8.55%
LAND BANK OF THE PHILIPPINES	9,702,134,275.60	117,374,308,128.00	8.27%
PHIL NATIONAL BANK	8,855,596,734.50	114,207,589,536.00	7.75%
CTBC BANK (PHILIPPINES) CORP	496,519,465.43	7,054,202,387.70	7.04%
PACIFIC ACE SAVINGS BANK INC	4,706,728.00	76,319,158.55	6.17%
ROBINSONS BANK CORPORATION	758,692,635.02	12,451,018,444.00	6.09%
BDO UNIBANK INC	17,834,422,711.00	302,727,692,901.00	5.89%
CITIBANK, N.A.	982,359,482.14	16,972,865,147.00	5.79%
PHIL TRUST COMPANY	1,119,876,214.30	20,094,247,461.00	5.57%
DUMAGUETE CITY DEV BANK INC	14,935,890.88	276,068,221.03	5.41%
RIZAL COMM'L BANKING CORP	3,537,445,273.10	67,855,734,755.00	5.21%
BANK OF THE PHIL ISLANDS	10,576,324,545.00	236,510,566,778.00	4.47%
CHINA BANKING CORP	3,199,071,460.70	77,361,534,085.00	4.14%
LIFE SAVINGS BANK INC	2,830,739.19	70,212,720.47	4.03%
HONGKONG & SHANGHAI BANKING CORP	501,255,503.13	13,704,308,950.00	3.66%
METROPOLITAN BANK & TCO	7,598,997,495.60	271,288,474,885.00	2.80%
LEMERY SAVINGS & LOAN BANK, INC.	2,090,392.45	87,226,998.60	2.40%
SECURITY BANK CORP	2,264,379,743.30	105,358,324,351.00	2.15%
HSBC SAVINGS BANK(PHILS) INC	34,454,464.98	1,651,920,450.79	2.09%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	4,111,569.36	207,304,386.94	1.98%
KEB HANA BANK - MANILA BRANCH	23,050,214.36	1,593,068,223.20	1.45%
CENTURY SAVINGS BANK CORPORATION	10,875,949.65	979,093,994.24	1.11%
BANGKOK BANK PUBLIC CO LTD	28,260,972.33	3,191,367,607.00	0.89%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK	5,386,169.19	678,186,107.53	0.79%
QUEZON COCONUT BANK INC (A THRIFT BANK)	409,148.47	59,057,662.60	0.69%
ING BANK N.V.	108.68	2,496,294,618.90	0.00%
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED	0.00	4,289,984,200.10	0.00%
BANK OF AMERICA N.A.	0.00	2,186,648,013.80	0.00%
BANK OF CHINA LIMITED-MANILA BRANCH	0.00	10,215,436,439.00	0.00%
BDO PRIVATE BANK, INC.	0.00	5,055,695,493.00	0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	5,191,602,246.40	0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0.00	2,004,340,503.30	0.00%
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH	0.00	2,091,760,749.60	0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	2,262,097,237.40	0.00%
ISLA BANK(A THRIFT BANK) INC	0.00	686,066,258.00	0.00%
JP MORGAN CHASE BANK NATIONAL ASSN.	0.00	2,809,504,881.60	0.00%
MEGA INT'L COMM'L BANK CO LTD	0.00	1,901,392,546.00	0.00%
MIZUHO BANK LTD - MANILA BRANCH	0.00	5,488,489,623.70	0.00%
MUFG BANK, LTD.	0.00	4,676,779,499.50	0.00%
PHIL STAR DEVELOPMENT BANK INC	0.00	101,999,171.52	0.00%
SHINHAN BANK - MANILA BRANCH	0.00	2,206,107,767.20	0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	13,004,369,812.00	0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0.00	2,392,823,488.50	0.00%
Grand Total	151,869,716,346.10	1,828,603,157,180.07	8.31%

 

 

Of the 92 banks in this list, eighteen banks have a Gross NPL to Stockholders Equity Ratio of 30% or more as of June 30, 2018.  These banks are as follows:

1. Enterprise Bank Inc (155.33% of SE)
2. Equicom Savings Bank Inc (90.64% of SE)
3. Philippine Veterans Bank (80.57% of SE)
4. UCPB Savings Bank (71.42% of SE)
5. Legazpi Savings Bank (59.99% of SE)
6. Sterling Bank of Asia Inc (58.31% of SE)
7. Philippine Resources Savings Banking Corporation (45.64% of SE)
8. Maritime Savings Bank Corporation (42.34% of SE)
9. Standard Chartered Bank (39.61% of SE)
10. China Bank Savings Inc (39.37% of SE)
11. Malasiqui Progressive SLB Inc (37.81% of SE)
12. 1st Valley Bank Inc (36.84% of SE)
13.  BPI Direct Banko Inc (36.33% of SE)
14.  BPI Family Savings Bank Inc (35.91% of SE)
15.  United Coconut Planters Bank (35.10% of SE)
16.  RCBC Savings Bank Inc (32.16% of SE)
17.  Northpoint Development Bank Inc (32.07% of SE)
18.  Malayan Bank Savings and Mortgage Bank Inc (30.41% of SE)

Source: www.bsp.gov.ph

An 80% Minimum NPL Coverage Ratio will Result in a Severe Undercapitalization of Some Philippine Banks - June 30, 2018

In a previous blog post called "Are Philippine Banks Under Provisioning Loan Losses? - As of June 30, 2018", we discussed the current aggregate Loan Loss Reserves (LLR) as a percentage of Total Loan Portfolio (TLP), which stood at 1.91% as of June 30, 2018, is below the historic average of 4.08% for the last thirty-four years.

Despite NPLs being at or near historic lows, some banks still have not adequately provisioned for loan losses. Their NPL Coverage Ratios are below the ideal ratio of 100% and even below the suggested minimum of 80% NPL Coverage Ratio.

As the table below suggests, it seems that around 30 banks (highlighted in yellow, failed banks in red) fall into this deficiency.


 

Philippine Banking System
NPL Coverage Ratio
June 30, 2018
Bank	Loan Loss Provisions	Gross NPLs	NPL Coverage Ratio
ALLBANK (A THRIFT BANK) INC	33,943,161.99	134,216,215.54	25.29%
UCPB SAVINGS BANK	536,011,384.46	1,881,456,594.41	28.49%
MARITIME SAVINGS BANK CORPORATION	6,948,645.24	21,895,317.81	31.74%
PHILIPPINE RESOURCES SAVINGS BANKING	384,104,649.18	1,179,751,558.32	32.56%
PNB SAVINGS BANK	757,713,070.25	2,300,104,540.68	32.94%
ENTERPRISE BANK INC (A THRIFT BANK)	148,926,171.26	397,531,630.21	37.46%
WEALTH DEVELOPMENT BANK CORPORATION	155,823,456.99	405,053,553.43	38.47%
EQUICOM SAVINGS BANK INC	248,392,363.03	639,559,441.16	38.84%
MALASIQUI PROGRESSIVE SLB, INC	6,951,706.48	17,776,401.59	39.11%
PACIFIC ACE SAVINGS BANK INC	1,949,435.10	4,706,728.00	41.42%
1ST VALLEY BANK INC A DEVELOPMENT BANK	283,317,794.20	672,608,541.12	42.12%
STERLING BANK OF ASIA INC (A SAVINGS	713,245,697.54	1,567,148,692.24	45.51%
CHINA BANK SAVINGS INC	1,905,541,832.88	3,781,873,875.79	50.39%
UNIVERSITY SAVINGS BANK INC	44,555,430.47	86,921,859.14	51.26%
PRODUCERS SAVINGS BANK CORPORATION	208,502,774.27	384,458,590.47	54.23%
RCBC SAVINGS BANK INC	2,266,957,467.57	4,169,995,103.97	54.36%
CITYSTATE SAVINGS BANK INC	77,047,455.98	136,247,026.40	56.55%
PAMPANGA DEVELOPMENT BANK	33,789,534.28	56,036,372.72	60.30%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	2,733,679.43	4,111,569.36	66.49%
BUSINESS AND CONSUMERS BANK (A DB)	10,017,575.29	14,966,364.02	66.93%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT	28,689,168.15	42,442,605.42	67.60%
UNITED COCONUT PLANTERS BANK	3,861,794,657.80	5,637,030,450.60	68.51%
BPI FAMILY SAVINGS BANK INC	7,176,599,160.70	10,468,965,854.84	68.55%
EAST WEST BANKING CORP	6,163,885,463.22	8,947,748,783.20	68.89%
FIRST CONSOLIDATED BANK INC (A PDB)	654,503,708.14	930,922,550.94	70.31%
HIYAS BANKING CORPORATION	28,859,545.81	40,456,381.87	71.33%
CORDILLERA SAVINGS BANK INC	15,115,504.60	20,233,158.02	74.71%
UNION BANK OF THE PHILS	5,886,754,006.60	7,764,720,733.10	75.81%
STANDARD CHARTERED BANK	2,060,854,781.77	2,633,305,802.50	78.26%
PHIL SAVINGS BANK	4,393,946,529.27	5,541,695,108.80	79.29%
LEGAZPI SAVINGS BANK INC	267,915,422.76	329,578,715.05	81.29%
PHILIPPINE BUSINESS BANK INC A SAVINGS	1,564,463,062.38	1,854,076,328.08	84.38%
BATAAN DEVELOPMENT BANK	21,551,136.32	25,467,010.45	84.62%
BANK ONE SAVINGS CORPORATION	44,360,200.39	51,920,016.00	85.44%
BANK OF MAKATI (A SAVINGS BANK) INC	2,014,409,463.94	2,271,355,751.00	88.69%
ASIA UNITED BANK CORPORATION	2,707,980,036.40	3,000,943,436.40	90.24%
SUN SAVINGS BANK INC	19,004,436.35	20,766,750.32	91.51%
YUANTA SAVINGS BANK PHILIPPINES INC	105,932,765.93	114,070,749.99	92.87%
PHIL BANK OF COMMUNICATIONS	2,230,711,405.42	2,377,981,312.50	93.81%
INTER-ASIA DEVELOPMENT BANK	6,847,736.00	7,160,669.24	95.63%
PENBANK INC (A PDB) (FORMERLY: PENINSULA	122,667,240.05	127,664,962.18	96.09%
BPI DIRECT BANKO INC A SAVINGS BANK	787,492,845.37	814,235,200.14	96.72%
RIZAL COMM'L BANKING CORP	3,433,264,411.45	3,537,445,273.10	97.05%
MALAYAN BANK SAVINGS AND MORT BANK INC	361,423,970.33	369,652,752.94	97.77%
NORTHPOINT DEV'T BANK INC	118,459,622.13	112,927,580.50	104.90%
DEVELOPMENT BANK OF THE PHIL	7,345,351,988.80	6,833,844,003.90	107.48%
PHILIPPINE VETERANS BANK	2,462,760,755.53	2,244,899,440.80	109.70%
MAYBANK PHILIPPINES INCORPORATED	2,088,668,695.90	1,893,373,519.10	110.31%
MERCHANTS SAVINGS & LOAN ASSN INC	80,188,059.67	72,606,891.31	110.44%
LEMERY SAVINGS & LOAN BANK, INC.	2,374,586.45	2,090,392.45	113.60%
ROBINSONS BANK CORPORATION	872,785,890.55	758,692,635.02	115.04%
BANK OF COMMERCE	2,276,436,875.69	1,790,008,869.00	127.17%
DUMAGUETE CITY DEV BANK INC	19,299,237.59	14,935,890.88	129.21%
PHIL NATIONAL BANK	12,466,978,484.90	8,855,596,734.50	140.78%
LAND BANK OF THE PHILIPPINES	13,933,110,440.10	9,702,134,275.60	143.61%
CTBC BANK (PHILIPPINES) CORP	761,964,752.87	496,519,465.43	153.46%
FARMERS SAVINGS & LOAN BANK INC	26,635,401.48	16,432,486.76	162.09%
BANK OF THE PHIL ISLANDS	17,231,821,061.20	10,576,324,545.00	162.93%
CARD SME BANK INC A THRIFT BANK	160,862,682.64	98,098,716.66	163.98%
CHINA BANKING CORP	5,546,148,140.10	3,199,071,460.70	173.37%
CENTURY SAVINGS BANK CORPORATION	19,537,665.62	10,875,949.65	179.64%
BDO UNIBANK INC	32,288,167,672.00	17,834,422,711.00	181.04%
LIFE SAVINGS BANK INC	5,424,695.67	2,830,739.19	191.64%
METRO CEBU PUBLIC SAVINGS BANK	18,669,869.21	9,340,189.11	199.89%
METROPOLITAN BANK & TCO	17,584,868,216.20	7,598,997,495.60	231.41%
SECURITY BANK CORP	6,170,190,831.40	2,264,379,743.30	272.49%
PHIL TRUST COMPANY	3,241,974,941.72	1,119,876,214.30	289.49%
HSBC SAVINGS BANK(PHILS) INC	110,492,201.78	34,454,464.98	320.69%
HONGKONG & SHANGHAI BANKING CORP	1,752,444,541.53	501,255,503.13	349.61%
QUEZON COCONUT BANK INC (A THRIFT BANK)	1,433,319.51	409,148.47	350.32%
KEB HANA BANK - MANILA BRANCH	86,823,705.95	23,050,214.36	376.67%
CITIBANK, N.A.	3,965,629,763.80	982,359,482.14	403.68%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK	23,456,387.15	5,386,169.19	435.49%
BANGKOK BANK PUBLIC CO LTD	431,981,327.30	28,260,972.33	1528.54%
ING BANK N.V.	109,725,921.33	108.68	100962386.21%
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED	92,198,639.03	0.00	NA
BANK OF AMERICA N.A.	10,539,078.03	0.00	NA
BANK OF CHINA LIMITED-MANILA BRANCH	213,607,441.58	0.00	NA
BDO PRIVATE BANK, INC.	9,027,427.33	0.00	NA
CATHAY UNITED BANK CO LTD - MANILA BRANCH	40,955,384.07	0.00	NA
FIRST COMMERCIAL BANK LTD MANILA BRANCH	7,558,600.00	0.00	NA
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH	0.00	0.00	NA
INDUSTRIAL BANK OF KOREA MANILA BRANCH	24,462,732.17	0.00	NA
ISLA BANK(A THRIFT BANK) INC	4,290,580.33	0.00	NA
JP MORGAN CHASE BANK NATIONAL ASSN.	16,000,000.00	0.00	NA
MEGA INT'L COMM'L BANK CO LTD	141,821,431.83	0.00	NA
MIZUHO BANK LTD - MANILA BRANCH	519,990,226.78	0.00	NA
MUFG BANK, LTD.	388,210,030.46	0.00	NA
PHIL STAR DEVELOPMENT BANK INC	312,222.47	0.00	NA
SHINHAN BANK - MANILA BRANCH	22,491,063.77	0.00	NA
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	175,897,695.44	0.00	NA
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	16,444,498.47	0.00	NA
Grand Total	184,673,974,732.57	151,869,716,346.10	121.60%

Raising the NPL Coverage Ratio to a minimum of 80% will entail additional loan loss provisions for some banks that could eat into a substantial chunk (20% or more) of their Stockholder's Equity.  Based on the table below, four banks will be severely affected:

Philippine Banking System
Impact on SE of Minimum Loan Loss Provisions
June 30, 2018
Bank	Gross NPLs	Minimum Loan Loss Provisions at 80% NPL Coverage Ratio	Stockholder's Equity	Impact on SE
ENTERPRISE BANK INC (A THRIFT BANK)	397,531,630.21	318,025,304.17	255,928,851.45	-66.07%
EQUICOM SAVINGS BANK INC	639,559,441.16	511,647,552.93	705,627,984.97	-37.31%
UCPB SAVINGS BANK	1,881,456,594.41	1,505,165,275.53	2,634,213,019.40	-36.79%
PHILIPPINE RESOURCES SAVINGS BANKING	1,179,751,558.32	943,801,246.66	2,584,678,848.90	-21.65%
MARITIME SAVINGS BANK CORPORATION	21,895,317.81	17,516,254.25	51,712,483.13	-20.44%
STERLING BANK OF ASIA INC (A SAVINGS	1,567,148,692.24	1,253,718,953.79	2,687,742,085.37	-20.11%
MALASIQUI PROGRESSIVE SLB, INC	17,776,401.59	14,221,121.27	47,015,701.96	-15.46%
1ST VALLEY BANK INC A DEVELOPMENT BANK	672,608,541.12	538,086,832.90	1,825,791,198.67	-13.95%
CHINA BANK SAVINGS INC	3,781,873,875.79	3,025,499,100.63	9,605,233,020.00	-11.66%
WEALTH DEVELOPMENT BANK CORPORATION	405,053,553.43	324,042,842.74	1,466,070,380.61	-11.47%
PNB SAVINGS BANK	2,300,104,540.68	1,840,083,632.54	11,815,509,660.09	-9.16%
RCBC SAVINGS BANK INC	4,169,995,103.97	3,335,996,083.18	12,965,046,161.93	-8.25%
ALLBANK (A THRIFT BANK) INC	134,216,215.54	107,372,972.43	1,023,982,884.40	-7.17%
UNIVERSITY SAVINGS BANK INC	86,921,859.14	69,537,487.31	413,440,905.05	-6.04%
PRODUCERS SAVINGS BANK CORPORATION	384,458,590.47	307,566,872.38	1,807,520,461.46	-5.48%
PAMPANGA DEVELOPMENT BANK	56,036,372.72	44,829,098.18	210,076,452.17	-5.26%
CITYSTATE SAVINGS BANK INC	136,247,026.40	108,997,621.12	689,166,525.37	-4.64%
BPI FAMILY SAVINGS BANK INC	10,468,965,854.84	8,375,172,683.87	29,151,476,551.93	-4.11%
UNITED COCONUT PLANTERS BANK	5,637,030,450.60	4,509,624,360.48	16,061,149,942.00	-4.03%
EAST WEST BANKING CORP	8,947,748,783.20	7,158,199,026.56	40,866,792,665.00	-2.43%
PACIFIC ACE SAVINGS BANK INC	4,706,728.00	3,765,382.40	76,319,158.55	-2.38%
BUSINESS AND CONSUMERS BANK (A DB)	14,966,364.02	11,973,091.22	89,288,568.22	-2.19%
FIRST CONSOLIDATED BANK INC (A PDB)	930,922,550.94	744,738,040.75	4,570,662,564.45	-1.97%
HIYAS BANKING CORPORATION	40,456,381.87	32,365,105.50	181,661,891.20	-1.93%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT	42,442,605.42	33,954,084.34	488,777,914.10	-1.08%
CORDILLERA SAVINGS BANK INC	20,233,158.02	16,186,526.42	125,480,691.01	-0.85%
STANDARD CHARTERED BANK	2,633,305,802.50	2,106,644,642.00	6,648,780,037.10	-0.69%
UNION BANK OF THE PHILS	7,764,720,733.10	6,211,776,586.48	72,244,542,805.00	-0.45%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	4,111,569.36	3,289,255.49	207,304,386.94	-0.27%
PHIL SAVINGS BANK	5,541,695,108.80	4,433,356,087.04	21,335,640,584.46	-0.18%
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH	0.00	0.00	2,091,760,749.60	0.00%
BDO PRIVATE BANK, INC.	0.00	0.00	5,055,695,493.00	0.18%
PHIL STAR DEVELOPMENT BANK INC	0.00	0.00	101,999,171.52	0.31%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0.00	0.00	2,004,340,503.30	0.38%
BANK ONE SAVINGS CORPORATION	51,920,016.00	41,536,012.80	607,047,008.69	0.47%
BANK OF AMERICA N.A.	0.00	0.00	2,186,648,013.80	0.48%
JP MORGAN CHASE BANK NATIONAL ASSN.	0.00	0.00	2,809,504,881.60	0.57%
ISLA BANK(A THRIFT BANK) INC	0.00	0.00	686,066,258.00	0.63%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0.00	0.00	2,392,823,488.50	0.69%
LEGAZPI SAVINGS BANK INC	329,578,715.05	263,662,972.04	549,357,466.88	0.77%
PHILIPPINE BUSINESS BANK INC A SAVINGS	1,854,076,328.08	1,483,261,062.46	10,483,404,670.03	0.77%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	0.00	5,191,602,246.40	0.79%
LEMERY SAVINGS & LOAN BANK, INC.	2,090,392.45	1,672,313.96	87,226,998.60	0.81%
RIZAL COMM'L BANKING CORP	3,537,445,273.10	2,829,956,218.48	67,855,734,755.00	0.89%
SHINHAN BANK - MANILA BRANCH	0.00	0.00	2,206,107,767.20	1.02%
SUN SAVINGS BANK INC	20,766,750.32	16,613,400.26	230,235,251.89	1.04%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	0.00	2,262,097,237.40	1.08%
CENTURY SAVINGS BANK CORPORATION	10,875,949.65	8,700,759.72	979,093,994.24	1.11%
ASIA UNITED BANK CORPORATION	3,000,943,436.40	2,400,754,749.12	26,734,337,352.00	1.15%
BATAAN DEVELOPMENT BANK	25,467,010.45	20,373,608.36	87,495,176.93	1.35%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	0.00	13,004,369,812.00	1.35%
INTER-ASIA DEVELOPMENT BANK	7,160,669.24	5,728,535.39	80,488,067.51	1.39%
YUANTA SAVINGS BANK PHILIPPINES INC	114,070,749.99	91,256,599.99	904,676,373.66	1.62%
QUEZON COCONUT BANK INC (A THRIFT BANK)	409,148.47	327,318.78	59,057,662.60	1.87%
BANK OF CHINA LIMITED-MANILA BRANCH	0.00	0.00	10,215,436,439.00	2.09%
ROBINSONS BANK CORPORATION	758,692,635.02	606,954,108.02	12,451,018,444.00	2.14%
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED	0.00	0.00	4,289,984,200.10	2.15%
BANK OF MAKATI (A SAVINGS BANK) INC	2,271,355,751.00	1,817,084,600.80	8,238,275,831.54	2.40%
DUMAGUETE CITY DEV BANK INC	14,935,890.88	11,948,712.70	276,068,221.03	2.66%
PHIL BANK OF COMMUNICATIONS	2,377,981,312.50	1,902,385,050.00	12,176,574,918.00	2.70%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK	5,386,169.19	4,308,935.35	678,186,107.53	2.82%
BANK OF THE PHIL ISLANDS	10,576,324,545.00	8,461,059,636.00	236,510,566,778.00	3.71%
MERCHANTS SAVINGS & LOAN ASSN INC	72,606,891.31	58,085,513.05	575,687,456.31	3.84%
CHINA BANKING CORP	3,199,071,460.70	2,559,257,168.56	77,361,534,085.00	3.86%
DEVELOPMENT BANK OF THE PHIL	6,833,844,003.90	5,467,075,203.12	48,566,251,889.00	3.87%
SECURITY BANK CORP	2,264,379,743.30	1,811,503,794.64	105,358,324,351.00	4.14%
PENBANK INC (A PDB) (FORMERLY: PENINSULA	127,664,962.18	102,131,969.74	486,537,157.86	4.22%
METROPOLITAN BANK & TCO	7,598,997,495.60	6,079,197,996.48	271,288,474,885.00	4.24%
KEB HANA BANK - MANILA BRANCH	23,050,214.36	18,440,171.49	1,593,068,223.20	4.29%
ING BANK N.V.	108.68	86.94	2,496,294,618.90	4.40%
LIFE SAVINGS BANK INC	2,830,739.19	2,264,591.35	70,212,720.47	4.50%
MAYBANK PHILIPPINES INCORPORATED	1,893,373,519.10	1,514,698,815.28	12,631,096,125.00	4.54%
PHIL NATIONAL BANK	8,855,596,734.50	7,084,477,387.60	114,207,589,536.00	4.71%
HSBC SAVINGS BANK(PHILS) INC	34,454,464.98	27,563,571.98	1,651,920,450.79	5.02%
CTBC BANK (PHILIPPINES) CORP	496,519,465.43	397,215,572.34	7,054,202,387.70	5.17%
LAND BANK OF THE PHILIPPINES	9,702,134,275.60	7,761,707,420.48	117,374,308,128.00	5.26%
MALAYAN BANK SAVINGS AND MORT BANK INC	369,652,752.94	295,722,202.35	1,215,712,099.40	5.40%
BANK OF COMMERCE	1,790,008,869.00	1,432,007,095.20	14,938,230,238.00	5.65%
BDO UNIBANK INC	17,834,422,711.00	14,267,538,168.80	302,727,692,901.00	5.95%
BPI DIRECT BANKO INC A SAVINGS BANK	814,235,200.14	651,388,160.11	2,241,511,112.81	6.07%
MEGA INT'L COMM'L BANK CO LTD	0.00	0.00	1,901,392,546.00	7.46%
CARD SME BANK INC A THRIFT BANK	98,098,716.66	78,478,973.33	1,068,715,715.70	7.71%
NORTHPOINT DEV'T BANK INC	112,927,580.50	90,342,064.40	352,164,899.53	7.98%
MUFG BANK, LTD.	0.00	0.00	4,676,779,499.50	8.30%
MIZUHO BANK LTD - MANILA BRANCH	0.00	0.00	5,488,489,623.70	9.47%
HONGKONG & SHANGHAI BANKING CORP	501,255,503.13	401,004,402.50	13,704,308,950.00	9.86%
FARMERS SAVINGS & LOAN BANK INC	16,432,486.76	13,145,989.41	130,364,483.10	10.35%
PHIL TRUST COMPANY	1,119,876,214.30	895,900,971.44	20,094,247,461.00	11.68%
BANGKOK BANK PUBLIC CO LTD	28,260,972.33	22,608,777.86	3,191,367,607.00	12.83%
METRO CEBU PUBLIC SAVINGS BANK	9,340,189.11	7,472,151.29	73,784,149.66	15.18%
CITIBANK, N.A.	982,359,482.14	785,887,585.71	16,972,865,147.00	18.73%
PHILIPPINE VETERANS BANK	2,244,899,440.80	1,795,919,552.64	2,786,113,008.00	23.93%
Grand Total	151,869,716,346.10	121,495,773,076.88	1,828,603,157,180.07	3.45%

 

Source: www.bsp.gov.ph

Out of the five banks highlighted in yellow, three banks have been regularly listed as one of the "The Top Distressed Philippine Banks as of June 30, 2018".

The most notable of the banks in this list is Enterprise Bank. The bank faces a shortfall of 66.07% of its stated stockholder's equity of Php 255.93 million if it were to increase its loan loss provisions to meet a minimum NPL Coverage Ratio of 80%. In short, most of its equity would be wiped out if the bank were to properly account for its losses.